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Google Cost Per Action Affiliate Advertising

Red Herring reports that Google has jumped on the affiliate marketing bandwagon. The Internet search giant confirmed that it�s testing a new service that allows sites that host online ads sold by Google to generate more revenue.

In this so-called 'cost-per-action' service, advertisers pay a fee only when Internet users click on their online ads and then buy a product or generate sales leads. The fees are then split between Google and web sites hosting the ads. The new service is part of Google AdSense, a program that lets web sites, such as merchant sites and blogs (like DIgital Lifescapes), show relevant ads that are purchased from Google.

Standard & Poor�s analyst Scott Kessler was not surprised that Google came out with a so-called affiliate marketing service. eBay announced a similar program last week with a service called Ad Context. Online advertising services companies such as ValueClick and DoubleClick also run affiliate networks.

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